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Form 500CR-Instructions Fillable Business Income Tax Credits
(all forms fillable on Windows, Mac, Android tablets, and iPad using Adobe Reader XI)
Dental services For fiscal years 2012 and 2013 only a company that has Geothermal Have been certified as a biotechnology company by DBED; Municipal Solid Waste Must apply for and receive final certification from DBED to No entry is to be made on line 8 the Work Based Learning No entry is to be made on lines 2 12 14 and 21 because Open and Closed Loop Biomass Qualified Capital Expenses are all expenditures made by the Qualified Hydropower Second Year Small Irrigation Solar The total tax liability from line 14 of Maryland Corporation The total tax liability from line 22 less any amounts from lines The total tax liability from line 32c less any amounts from $2 million for any calendar year If the total amount of credits $200 000 $400 for each individual recharging system or the State income $500 000 and cannot exceed $5 000 000 $500 in child care and transportation expenses per each second $500 per taxpayer $6 000 of qualified second year wages $6 000 of wages paid to each second year qualified employee $750 per taxpayer (1) Provides direct support to a HEZ practitioner; and (2) Expands access to services in a HEZ (a) Voluntarily leaves the employer; (b) Becomes disabled or death occurs; or (b) Becomes further disabled or death occurs; or (FEIN) to ensure your credit is not disallowed Check the box * The carryforward period for unused Research and Development Tax Credits from tax years prior to 2005 remains 15 years The **Required Certification must be included with Form 500CR 0 enter 0 1 888 554 0334 or 410 554 9442 1 If the project is a totally separate facility then project 1 Maryland taxable income; 1 Part U 10 N Calvert St Suite 444 10 Total eligible start up costs; 100% if the event requiring recapture of the credit occurs 10a 11 and 19 from Part W; and line 6 from Part Y The totals of 11 $500 000 maximum 1100 N Eutaw St Room 201 1100 N Eutaw Street 12 months 12/31/2011) 13 Part D 14th tax year following the tax year in which the eligible economic 14th tax year following the tax year in which the entity locates in 150% of the federal minimum wage is located in Maryland is 17 Part W Business Tax Credit Summary 1999 A cogenerator or an electricity supplier must not be subject 2 Has a disability that presently constitutes an impediment 2 Maryland taxable income from the project; 2 only 20 Part W Business Tax Credit Summary 201 West Preston Street 2012 Form 500CR 2012 Form 500CR to line 24 of Part W 2012 No more credits may be earned for this program 23 though 25 of Form 502 (if you are not a PTE member 2301 Argonne Drive 25 from Form 502 on line 28 Part W or line 32c less any amounts 25 Part P III If the result is 0 or less enter 0 This is the amount 3 Is ready for employment; or 3 Non project taxable income; 301 W Preston Street 33% if the event requiring recapture of the credit occurs 4 Number of qualified employees; 401 E Pratt St 401 E Pratt St 401 E Pratt St 401 E Pratt St 401 E Pratt St 14th Floor 410 260 5800 410 260 7655 410 260 7655 410 260 8300 410 767 1191 410 767 2047 410 767 2047 410 767 5612 410 767 6342 410 767 6438 or 410 767 4041 410 767 6438 or 410 767 4041 410 767 6438 or 410 767 4980 410 767 6438 or 410 767 4980 410 767 6438 or 410 767 4980 410 767 8755 5 If the number of employees is fewer than 25 employees a PTE 5 Part N 500CR 500CR 500CR 500CR 500CR 500CR 500CR 500CR 502 and line 19 of Form 505 Pass through entities will report the 510 Form 500CR and all other required attachments for members 510 Schedule K 1 The PTE also must indicate on the Schedule K 1 510 Schedule K 1 you do not need to complete the calculations 580 Taylor Avenue 6 St Paul Street 2nd Floor 6 The PTE member then will enter on line 7a that portion of line 6 The tax year the project was put into service; 6 which is attributable to the member s share of project taxable 60 qualified positions 30 high paying qualified positions or 25 60 West St Suite 300 60 West Street Suite 300 67% if the event requiring recapture of the credit occurs 7 Amount of Maryland income tax required to be withheld from 7 and on Part I line 3 of Form 502CR 8 25% Individuals may use the highest tax rate used to calculate 8 Total eligible project costs; 9 $5 000 000 maximum; a business facility in a single location in the state and is filled A business may be eligible to claim credits against the State A business may claim a credit against its Maryland State income A business must be certified as a qualified business entity that a business to enable a qualified employee with a disability to be A carryover credit may be claimed for the project tax credit against a certain amount of the entity s State tax liability A company that has been in active business for up to 12 A company that has been in active business no longer A credit is allowed for a qualified cogenerator small power producer A credit is allowed for businesses that conduct or operate a trade A credit is allowed for each qualified ex felon for a two year period A credit is allowed for premiums paid by employers to provide long A credit is allowed to businesses that hired qualified ex felons a credit is claimed The credit is limited to 50% of the approved A credit of up to $600 is allowed for the first year of employment A Enterprise Zone Tax Credit X a film production entity the estimated total direct costs incurred in a focus area A credit is allowed for each new qualified employee A Health Enterprise Zone Practitioner is a health care practitioner A HEZ practitioner may claim a refundable credit of $10 000 for A III a Maryland Form 510 Schedule K 1 to each partner shareholder a negative number A nonrefundable HEZ Practitioner Tax Credit is available on a previously qualified economically disadvantaged employee the A PTE will report on Maryland Form 510 Schedule K 1 the distributive A PTE will report the same numbers and information that appear a QMBC (but not own more than 25% of the equity interests A QMBC includes: a qualified business entity incurs to acquire construct rehabilitate A qualified business entity that is a PTE (partnership LLC S a qualified business that is not located in a Revitalization Area a qualified distressed county A qualified employee is a HEZ practitioner community health A qualified employee is a qualified ex felon in accordance with A qualified employee is an employee filling a qualified position A Qualified Employee with a disability means an individual who: A qualified film production entity may claim a credit against A qualified position is a full time position of indefinite duration A qualified position is a full time position which pays at least A qualified small business also may claim a credit against its A Small Business is defined as a for profit corporation limited A) and the State tax liability on non project taxable income (the actually used on the member s return and enter the result on line Add lines 1 and 2 and enter the amount on line 3 If this number Add lines 11 and 12 to obtain the amount of Job Creation Tax Add lines 23 and 24 and enter the result on line 25 This is the Add lines 5 7 12 and 14 and enter total on line 15 Part A addition modification on the tax return additional information on this credit program contact: Administration before claiming this credit Administration must be included Administration must be included affidavit (see below) as prepared by the investor are required to after January 1 2016 after January 1 2017 after January 1 2017 after January 1 2018 after January 1 2020 after July 1 2016 after July 1 2018 after the 2nd tax year rather than the 4th tax year after the close of the tax year for which the credit is claimed (1) after the year the credit was earned the average number of agricultural materials for use in the production of agricultural alcohol and substance abuse services; or All amounts (except for line 13) entered in Section C of Part P I all businesses that apply If the total amount of credits applied for allowed as the nonrefundable portion of this credit (line 17 Part allowed for the eligible project costs in the initial tax year (the allowed for the replaced employee allowed in the initial tax year prior carryover tax years and any Also a business may claim a credit against its Maryland State also are qualified commuter benefits Also enter the amount from line 4 Part I on line 9 Part W Also enter this amount on line 5 Part W Also enter this amount on line 6 Part W also on line 15 Part W Also the amount on line 15 Part A becomes an addition Also the amount on line 9 Part C becomes an addition amended return to make changes affecting Form 500CR Amended Returns You will need to file an electronic Maryland amount allowed beginning with the first year certified amount also is an addition modification on the tax return amount for start up costs amount from line 7 to your members amount is an addition modification on the tax return amount is calculated by subtracting line 26 from line 23 If the amount is carried to line 11 Part W Also this amount is an amount is carried to line 6 Part Y Also this amount is an addition amount may be claimed amount of credit for each entity providing credit information amount of credits approved by DBED for any tax year may not amount on line 1 Section A by the highest rate used to calculate amount on line 10 by 50% and entering the result on line 11 amount on line 2 by the highest rate used to calculate the tax on amount on line 3 Part Y amount on line 3 Section A) amount that you entered on line 5 Part P I an addition modification must be made in the amount of the credit An addition to income is required for credits from Parts A C G An additional credit is allowed for expenses incurred by the An employee must not have been hired to replace a laid off an enterprise zone that is especially in need) the credit amounts an excess carryover of the credit until it is used or the expiration an excess carryover of the credit until it is used or the expiration An individual or corporation may claim a credit against the State An individual or corporation may claim a credit against the State An investor s credit also may be subject to a recapture if the and 37 and enter this amount on line 38 This is the total refundable and any credits passing through to you and base of operations in Maryland the investor must notify the and development expenses were paid AND DEVELOPMENT TAX CREDIT and Economic Development (DBED) has a list of jurisdictions with and Economic Development s (DBED) Web site at choosemaryland and entering the result on line 3 Part F and equipment costs incurred to construct or renovate SCIFs on and it exceeds the State income tax the business is entitled to and it exceeds the State income tax the business is entitled to and it exceeds the State income tax the business is entitled to an and it exceeds the State income tax the individual or business and must be primarily engaged in the research development or and on line 19 Part W Business Tax Credit Summary Also this and on line 4 Part Y If the result is less than 0 enter as and receive approval by the DHCD for each contribution for which and the standards which businesses must meet to qualify contact: and then subtracting line 7a from line 6; if the amount on line 8a is and third year boxes and up to $500 for the second year To verify if a child care center and/or by the Maryland Department of Labor Licensing and Annapolis MD 21401 Annapolis MD 21401 another separate Part L must be completed for each investment Any unused credit amount for the tax year may not be carried Any unused credit amount for the tax year may not be carried any unused portion of the tax credit from line 7 Part X of your applicant will be required to file an electronic amended Maryland application package and will certify the amount of tax credit the application process application report of expenses and supporting documents to DBED applied for by all businesses exceeds $2 million the credits will apply for ESCC for the calendar year 2013 appropriate federal agency For costs related to a single SCIF are eligible for the One Maryland Economic Development Tax Credit: are higher are in their second year of employment in the box that is labeled Are new employees or employees rehired after being laid Are Pass Through Entities following Part IV Summary Area for the current year on line 5 of Part D II Area The credit is the lesser of $1 500 multiplied by the number Article Article and Code of Maryland Regulations 24 05 03 Article and who provides: as a current credit as a negative number as an attachment to Form MW508 (Annual Employer as such by the DORS (or by the DLLR for a disabled veteran) as such by: Assessments and Taxation must be included at the new or expanded business facility (from line 4a Part P I) at the new or expanded facility attributable to income from the project (line 7b) available from Form 500CR members There are additional reporting requirements unique available from the DBED Web site The business must submit an B Health Enterprise Zone Hiring Tax Credit X Baltimore MD 21201 Baltimore MD 21201 Baltimore MD 21201 Baltimore MD 21201 2395 Baltimore MD 21202 Baltimore MD 21202 Baltimore MD 21202 Baltimore MD 21202 Baltimore MD 21202 Baltimore MD 21202 1614 Baltimore MD 21218 Based on the Maryland Form 510 Schedule K 1 a member then based on the number of qualified positions created or wages paid basis for determining the tax amount be approved on a pro rata basis be entitled to an income tax credit be entitled to pass on a refundable credit or whether the credit be included with your return for the Biotechnology Investment be used primarily to transport employees between home and the Because the new law goes into effect July 1 2013 special rules been eligible for this tax credit been in active business for up to 15 years; or BEFORE completing Part P I Beginning with Part P II the computation returns to one column and beginning with the first year the employee was qualified beginning with the year the employee was qualified The credits are Behavioral health services including mental health or benefits or $50 per month for each employee Bio Heating Oil Tax Credit** R biomolecules (DNA RNA or protein) cells tissues or organs Biotechnology Investment Incentive Tax Credit** L body of a county or municipal corporation certain businesses may book value assets totaling at the beginning or the end of the tax both spouses Both the final certificate received from DBED and a statement of Business and Economic Development (DBED) Business and Economic Development (DBED) before the credit business entities except PTE members Column 2 is used by PTE BUSINESS ENTITIES THAT ARE PASS THROUGH ENTITIES business entity as a project credit for this tax year The project business entity has between 10 and 24 employees but has had at business entity to enable a qualified employee with a disability business entity was required to withhold during this tax year from business entity which has been certified for the tax credit may business for the purchase and installation of equipment or business is entitled to an excess carryover of the credit until business may apply the excess to the entity s total Maryland State Business must include certification with the return which business names in this situation to avoid processing delays business Please be sure to check the box as you begin to enter business tax credits against corporation and individual income tax Business X Businesses certified by SDAT for the Businesses that Create New Businesses may claim a credit against the State income tax for Businesses Not Certified as a Small Business Businesses or individuals who contribute to approved Community Businesses That Create New Jobs Tax Credit F Businesses that incur qualified research and development Businesses that own operate develop construct or rehabilitate but cannot be more than $5 000 but not more than 25% of incurred costs The total amount of by September 15 of the calendar year following the end of the tax by the Mayor and City Council of Baltimore City or the governing by the taxpayer during the tax year The credit may not exceed C Maryland Disability Employment Tax Credit X Calculate the current year credits available by multiplying the Calculate the prorate factor on line 4d If line 4a is greater than or calculated after the nonrefundable portions of the credit are Calulate the tax on nonproject income by subtracting line 7a from Can be an individual or any entity (except a retirement can be claimed The credit must be taken for the tax year in which cannot be claimed until the date of issuance of the final certificate carryover carryover years During this period these credits are limited up to Catherine Batavik Deputy Director causing the recapture occurred cbatavik@choosemaryland org Cellulosic Ethanol Technology Research & Development certificate approved by the Department of Business and Economic certificate is rescinded by DBED due to the investor failing certification from DBED and statement of affidavit; and Maryland certification from the Department of Natural Resources which Certification must be included with the Form 500CR when claiming Certification must be obtained from the Maryland Department of certification of the approved credit amount to the amended certification See Code of Maryland Regulations 24 05 03 for certification to claim the credit certification to each member certification will have a different Taxpayer Identification Number certified applicants Certified as a Small Business X certified by the Department of Health and Mental Hygiene (DHMH) certified by the Maryland Department of Business and Economic citc@mdhousing org claim a prorated share of this credit if: (1) the number of qualified claim the Biotechnology Investment Incentive Tax Credit claim the total credit you must complete a second Part L at the claimed claimed in Part A I claimed in the year in which the PTE s fiscal year ends Claiming the Tax Credit Claiming the Tax Credit Clean Energy Incentive Tax Credit** N clearance administrative expenses CLEARANCE COST (ESCC) TAX CREDIT Note: Special Rules for Calendar Year 2013 clearance; and co fired with coal the credit is 0 5 cents for each kilowatt hour of comes first commercialization of innovative and proprietary technology that Community Development (DHCD) The taxpayer must apply to Community Investment Tax Credit** E commuter benefits were paid Commuter Tax Credit M Complete lines 1 through 6 in Part B of Form 500CR if the HEZ Complete Parts A I and A II if the business is located in an Complete Parts A III and A IV if the business is located in a focus Complete the summary of credit amounts claimed for the project comprises interacts with or analyzes biological material including Comptroller by reporting the applicable recapture amount on the Comptroller of Maryland for the year in which the expenses were Comptroller of Maryland or the Maryland Department of compute the credit amounts and claim any of the credits allowed considered to be received by the member(s) on the last day of construction costs and general supplies are NOT eligible expenses contact: DHMH continued for at least one full year unless the employee: contracting For a business to be eligible it must apply to and be contributions (including real property) not to exceed $250 000 corporation during the tax year By September 15 of the calendar corporation or business trust) must complete the Form 500CR Corporations will enter line 14 of Form 500 on line 28 Part W costs and for eligible start up costs incurred to establish relocate costs and other requirements businesses must satisfy to qualify costs credits from lines 33 and 34 This is the total nonrefundable costs up to $500 000 per calendar year covered by long term care insurance provided whichever is less covered under the employee benefit package in the box provided created as a result of the establishment of a business facility credit CREDIT CREDIT credit amount credit amount (line 15 Part P II) credit amount exceeds the tax due then a refund for the excess credit and include a copy of the DBED certification credit attributable to the ownership interest disposed of) by one credit certificate credit certificate for the estimated production costs To qualify as credit claimed credit during the tax years when this credit becomes a refundable credit for the new employee will be the same as would have been credit for this year Credit from line 38 Part P IV Credit from line 6 Part K II Credit G Credit I credit is allowed for each new employee with a disability for a two credit is allowed for each newly created qualified filled position credit must be taken over a 24 month period with half of the credit credit on line 22 is limited to the remaining Maryland State tax credit that may be claimed in Part P II is limited up to the amount credit The refundable portion of the start up credit is limited to credit to the distributive or pro rata portion of the PTE s taxable credit was claimed in Part P II then the amount of the start up credit will be reduced on a prorated basis based on the period of Credit X Credit X credit year cannot exceed $1 000 000 credit) credits and start up credit for the One Maryland Economic credits awarded to each business depends on the amount of Credits claimed by both spouses on a joint return Only one CREDITS INSTRUCTIONS CREDITS INSTRUCTIONS CREDITS INSTRUCTIONS CREDITS INSTRUCTIONS CREDITS INSTRUCTIONS CREDITS INSTRUCTIONS CREDITS INSTRUCTIONS CREDITS INSTRUCTIONS credits reported on this form If the total credits available in a Credits that may be claimed this year Enter the result on line D Job Creation Tax Credit X DBED certified Growth Credit (10%) DBED will certify the amount of the tax credit approved The total deductions expenses gains and losses directly attributable defined by the Americans with Disability Act; defined in Section 9 230 of the Tax Property Article is granted Department of Business and Economic Development (DBED) for Department of Health and Mental Hygiene (DHMH) in the Department of Housing and Community Development Department of Labor Licensing and Regulation Development (DBED) development (R&D) expenses paid or incurred by the individual or Development Tax Credit dhmh hez@maryland gov DHMH in their first year of employment directly from its location in the enterprise zone; disabilities as determined by the Division of Rehabilitation disability disadvantaged employee the credit for the new employee will be disadvantaged employee: $3 000 in the first year $2 000 in the disadvantaged qualified employees located in a focus area in their distributive or pro rata portion of these items must be furnished to distributive or pro rata share of any of these items as additions on distributive or pro rata share of tax credits reported on a Form Division of Neighborhood Revitalization Division of Rehabilitation Services Division of Workforce Development and Adult Learning does not include a position that is filled for a period of less than down to its subsidiaries It is important to identify FEINs and duration is paid at least 150% of the federal minimum wage is during the first year after the close of the tax year for which during the first year of a rental agreement for leasing spaces to during the five year period specified in the initial credit certificate during the tax year for which the tax credit is claimed; duty by the American Armed Forces for a service connected E Community Investment Tax Credit X each credit in Parts W Y and Z In addition if the PTE is passing each first year employee up to a maximum of $4 500 per employee each member of the PTE on the member s respective Maryland Form each ton of Maryland mined coal purchased in the current tax year Earn 150% or more of the federal minimum wage; and earned a portion of the credit will be recaptured for the tax year economic development project Economic Development Tax Credit economically disadvantaged employee for a three year period Economically disadvantaged employees are those who are certified Electric Vehicle Recharging Equipment Tax Credit ** V electricity produced during the five year period specified in the electricity supplier may not have been a public utility before July 1 electronic Form 510 must be filed and the Form 500CR section Electronic Format The paper version of Maryland Form 500CR If you are a PTE cl aiming the One Maryland Economic eligible economic development project This project credit amount eligible expenses and costs incurred with a limit of $500 000 for eligible to claim certain business tax credits against employee employee for whom the business received the corresponding employee or to replace an employee who is on strike or for whom employee referenced on line 1 Enter this amount on line 7 Part W employee s home and the workplace Qualified commuter benefits employee voluntarily left to take another job employees employees (employee months) listed on line 3 by $50 employees (line 5) employees For businesses located in a focus area (an area within employees located in a focus area A credit is allowed for each employees located in a focus area who were not claimed in Part employees multiplied by $10 000) employees The credit to be recaptured is reported on line 26 employees up to a maximum of $1 500 per employee employees who are not located in a focus area who were not employer for approved day care services for a child or children Employer Provided Long Term Care Insurance Tax Employment Opportunity Tax Creditt X Enter 50% of line 1 on line 2 Part E Enter a Yes or a No to the question on line 4b whether the Enter in the box on line 4c the tax year the project was put into Enter of line 12 the lesser of the amount reported on line 11 Enter on line 1 Part O the number of tons of Maryland mined coal Enter on line 1 Part U the amount of tax credit certified by DBED Enter on line 10 the lesser of the amount reported on line 9 Enter on line 11 the total eligible start up costs to establish or Enter on line 12 Part D 50% of the amount of credits from the Enter on line 13 the number of qualified employees employed Enter on line 16 the amount of the Maryland State tax liability Enter on line 17 the lesser of line 15 or line 16 This amount is Enter on line 23 the total of the credits listed on lines 1 through 22 Enter on line 24 the carryover of excess credits unable to be used Enter on line 3 Part D I 2 5% of the wages paid for each of the Enter on line 35 the nonrefundable portions of the project and startup Enter on line 4a the number of qualified employees This number Enter on line 5 the amount of Maryland income tax the qualified Enter on line 6: Enter on line 7 Part D II 5% of the wages paid for each of the Enter on line 7a Section B the State tax on the amount of income Enter on line 9 the total eligible project costs for the eligible Enter the amount from line 5 Part M to line 13 Part W Enter the amount from line 6 Part L on line 2 Part Y Enter the amount of approved contributions on line 1 Part E Enter the lesser of line 3 or line 4 on line 5 Part N Also enter this Enter the non project Maryland taxable income on line 3 This Enter the number of qualified positions for the current year on Enter the number of qualified positions working in a Revitalization Enter the refund from project costs allowable this year Calculate Enter the refund from start up costs allowable this year Calculate Enter the tentative refund amount on line 27 Part P III This Enter the total credits calculated for the current year by taking the Enter the total of lines 1 and 2 on line 3 Part N Enter the total of the certified amount by adding lines 1 and 2 entered on line 18 Part W Business Income Tax Summary entering the lesser of lines 23 24 or 25 enterprise zone but not in a focus area enterprise zone on activities of the business resulting Enterprise Zone Tax Credit** A enterprise zones on its Web site Go to www choosemaryland org ENTITIES THAT ARE PASS THROUGH ENTITIES (PTEs) entity s Maryland taxable income from the project (the project entity s total State tax liability and to separate the State tax liability ENTITY(PTE) REFUNDABLE TAX CREDIT SUMMARY equal to 25 enter 1 000000 equivalents expressed in United States dollars at risk of loss exceed $250 000 exceed $500 000 exceed $8 000 000 per year exceeds $500 000 in a year the credit will be prorated among the Exception: Credits received from PTEs If you have received excess excess carryover of the credit until it is used or the expiration of Excess credit may be carried forward until the excess amount is excess project credit amount exceeds the State tax liability exchange exempt under Internal Revenue Code 501(c)3 may be expand a business facility in a qualified distressed county expansion of services in a HEZ and is filled A qualified position Expenses expenses apportioned to the facility expenses are incurred as reported on the balance sheet less expenses directly related to a move from an existing non Maryland expenses in Maryland may be entitled to tax credits The total expiration of the 15th tax year after the project was placed in Expired Tax Credits F Businesses That Create New Jobs Tax Credit X Facilities (SCIFs) and Security Clearance Administrative facility and net income attributable to the project Next factor on line 4d and enter the result on line 8b fare cards smartcards and tokens) used to transport an employee FELONS TAX CREDIT (for employees hired from 1/1/07 through Felons Tax Credit is claimed against the income tax an addition figure the project income by apportioning the entire facility file an electronic amended income tax return for the tax year in filed Maryland return and include the following: copies of the final filled qualified positions for at least five years from the time Film Production Activity Tax Credit** U film production entity may claim a refund in the amount of the first or second year credit in the immediately preceding tax year first tax year in which this credit was claimed) prior carryover tax First Year box first year employee up to a maximum of $3 000 per employee First Year Leasing Costs Tax Credit approved by DBED First Year Leasing Costs Tax Credit for Qualified first year of employment in the First Year box Also enter the first year the employee was qualified five years whichever comes first For a member of the PTE to be allowed the credit the member For additional information contact: For additional information contact: For additional information contact: for at least six months before or during the business entity s for Businesses Certified as a Small Business For certification and further information contact: For certification or for additional information contact: For certification or for information on the standards that businesses For costs related to multiple SCIFs the credit is the amount of for credit contact: For information concerning qualifications for the credit contact the For information on distressed counties qualified employees eligible For information on the location of enterprise zones and focus areas For information on the location of HEZs and the standards which For more information about the HEZ Hiring Tax Credit certification For more information contact: For more information contact: For more information contact: For more information contact: For Parts P II P III and P IV the PTE member should follow the For PTE members of a qualified business entity enter your Maryland For questions on application and certification processes or for For taxpayers that are not PTE members enter your Maryland for the credit The amount which you enter in each section for the number of gallons of bio heating oil purchased for space or for the number of individual recharging systems For the sections in Part P I the member would complete Column for the tax credits Contact the county or municipal enterprise for the tax year for these positions for which they have been certified on line 1 Part F FORM 2013 Form 500 enter this amount on Form 500 line 15d Form 500; Form 500CR information into your return It is important that Form 500CR is completed which will combine the amounts for Form 500CR section of their electronic Maryland income tax return Form 502S Sustainable Communities Tax Credit Form Schedules K 1 showing the allocated share of credit amount forward to any other tax year forward to any other tax year forward To assist you we have provided a table with the number from line 6 Part L from lines 1 through 6 from lines 33 through 35 from Form 505 from school to work; and from the wages of qualified employees (line 5) Fully fully used G Long Term Employment of Qualified Ex Felons Tax gainfully employed GENERAL INSTRUCTIONS General Req uirements A Health Enterprise Zone (HEZ) General Requirements A credit is available for an investment General Requirements Businesses located in an enterprise zone General Requirements Businesses that employ persons with General Requirements Certain businesses that create new General requirements Credits may be claimed for eligible project Generally at any time after the 4th tax year but before the Generally this is a position that is full time and of indefinite Green Building Tax Credit X H RESERVED FOR FUTURE USE has continued for at least one full year unless the employee: Have been in active business no longer than 10 years; Have fewer than 50 full time employees; Have its headquarters and base of operations in Maryland; Health Enterprise Zone Hiring Tax Credit** B Health Systems & Infrastructure Administration HEZ practitioners must meet to qualify contact: hiring a qualified employee in a qualified position in a HEZ as hours of electricity that was co fired with coal Multiply this hours of electricity that was not co fired with coal Multiply this Human Resources Child Care Administrator for the county or city I Employer Provided Long Term Care Insurance Tax If a business that is eligible to claim the Research and Development If a property tax credit (or an enhanced property tax credit) as If claiming a credit for multiple projects complete a separate Part If credits are received from more than one entity include a list If line 7 is less than 0 enter the result on the appropriate return If separate accounti ng method is shown to be not If the facility produces electricity from qualified energy resources If the majority of the qualified positions are paid at least 250% of If the project is an expansion to a previously existing facility If the tax credit allowed exceeds the total tax otherwise payable by If the Wineries and Vineyards tax credits exceed the State tax If you are a PTE member of a qualified business entity multiply the If you are a PTE skip Section B Continue to Section C All If you are filing Form 500 or Form 510 continue to Part Z If you are filing Form 502 or Form 505 enter this amount on line If you have not applied for a FEIN please do so immediately imposed for that year the credits may be carried forward for 15 in a HEZ and is newly created as a result of the establishment or in a qualified Maryland biotechnology company (QMBC) To in a vanpool The vanpool vehicle must seat at least 8 adults and In addition an employee may not have been hired to replace an in an amount equal to the amount stated in the final tax credit in Maryland that are required to obtain federal security in Part J I line 3 In Part J II a qualified small business will claim the amount of in prior years and the amount of each credit that may be carried in the company after making the investment); in the final certificate If the credit amount exceeds the tax due in the QMBC for which this tax credit was certified or (2) the in the Second Year box in which the child care center is located in which this occurs Incentive Tax Credit must electronically file the Maryland Form Incentive Tax Credit to be allowed Complete Part L using the include the cost of transit instruments (tickets passes vouchers included with Form 500CR income as reported on Maryland Form 510 Schedule K 1 INCOME FROM THE PROJECT income is figured by using separate accounting reflecting income is the income generated by or arising out of the eligible income tax for certain costs related to federal based security income tax in an amount equal to $1 for each bushel of oyster income tax in an amount equal to 10% of the qualified research and income tax in an amount equal to 20 percent of the cost of any income tax in an amount equal to 3 per gallon of bio heating oil income tax liability and may request a refund of any excess credit income tax return Any credit in excess of the State income tax income tax return with the Comptroller of Maryland to claim the income tax up to $200 000 per tax year for qualified security income The tax on non project income on line 8a is calculated by income to the project incurred and include the certification from DBED incurred to enable a qualified employee to travel to and from work individual employed by the business in that or the three previous Individuals will enter line 22 less amounts from lines 23 through information provided in the final certificate and enter the amount initial credit certificate install or equip the eligible economic development project instructions following Part P IV Summary instructions for Parts D and F) INSURANCE TAX CREDIT interest or other ownership interest in the equity of the company investment ($250 000) and no entry is made on this line investment cannot include debt See 10 725 of the Tax General investment must be the contribution of money in cash or cash investment or if DBED revokes the final certificate due to false Investment Programs may be eligible for a credit against the investor s Maryland tax return for the tax year in which the event Is a veteran who has been discharged or released from active is applied against the remaining available State tax liability is eligible for the tax credit Applications for certification are is entitled to an excess carryover of the credit until it is used is equal to the lesser of the amount on line 19 or line 13 (qualified is in a State Priority Funding Area is less than 0 enter as a negative number This is the total is no longer available You must file your Maryland Development Tax Credit refer to the instructions in Part P is nonrefundable only The PTE must provide a copy of the final is not allocated or pro rated; a PTE would report this same number Is terminated for cause The credit must be prorated for is used by all taxpayers eligible to claim this credit except for PTEs it is used or it expires five years after the credit was earned It must be claimed on the Maryland income tax return for the tax J I K I K II and S These additions are comprised of lines 1 3 7 J I Maryland Employer Security Clearance Costs Tax J II First Year Leasing Costs Tax Credit for Qualified Small Job Creation Tax Credit** D Jobs Enhanced Property Tax Credit will enter the amount of income Jobs Property Tax Credit will enter the amount of income tax credit jurisdiction; and K I Research and Development Tax Credit* X K II Research and Development Tax Credits for Businesses L Biotechnology Investment Incentive Tax Credit X least 25 qualified employees for at least five years since they have less than 0 enter 0 Line 8a also is further prorated by the factor liability after taking the nonrefundable project credit (line 21) liability as certified by the State Department of Assessments and liability company partnership or sole proprietorship with net Licensing and Regulation This credit may not be claimed if the limitation A PTE that earned the Biotechnology Investment limited to $1 000 of wages paid and is applicable for only the limited to $1 500 of wages paid and is applicable for only the first limited to the following amounts of wages paid to the economically line 1 Part D I line 1 Part J I line 1 Part K I Line 1: Enter the amount of qualified employees certified by the Line 2: Enter $5 000 for each qualified employee certified by the line 26 Part W of Form 500CR and filed with the tax return for Line 3 Part J I will reflect the sum of line 1 and line 2 This Line 3 Part K I will reflect the sum of line 1 and line 2 This Line 3 Part L reflects the maximum dollar amount of credit per Line 3: (Reserved for 2014) line 4 Part K II Line 4: Enter the sum of lines 2 and 3 Line 5: Enter the refund recapture amount if applicable as a line 6 and enter the result on line 8a If the amount is less than line 6 Part B Line 6 Part K II will reflect the sum of line 4 and line 5 This Line 6: Subtract line 5 from line 4 and enter the result on line 6 lines 33 though 35 of Form 505 (if you are not a PTE located in a focus area not provided in Part A III The credit is located in a qualified distressed Maryland county and is newly Located in a Revitalization Area A credit is allowed for each located in Maryland The SCIF must be accredited by the location to a location in a qualified distressed Maryland county Long Term Employment of Qualified Ex Felons Tax longer will use Form 500CR but will use Form 508CR losses directly attributable to the facility and overhead M Commuter Tax Credit X Maintaining upgrading or installing computer systems Maryland biotechnology company not to exceed $250 000 The MARYLAND BUSINESS INCOME TAX MARYLAND BUSINESS INCOME TAX MARYLAND BUSINESS INCOME TAX MARYLAND BUSINESS INCOME TAX MARYLAND BUSINESS INCOME TAX MARYLAND BUSINESS INCOME TAX 2013 MARYLAND BUSINESS INCOME TAX 2013 MARYLAND BUSINESS INCOME TAX 2013 Maryland Department of Business and Economic Development Maryland Department of Business and Economic Development Maryland Department of Business and Economic Development Maryland Department of Business and Economic Development Maryland Department of Business and Economic Development Maryland Department of Health and Mental Hygiene Maryland Department of Labor Licensing and Regulation Maryland Department of Natural Resources Maryland Disability Employment Tax Credit C Maryland Disability Employment Tax Credit has been claimed for Maryland Employer Security Costs Tax Credit** J I Maryland Energy Administration Maryland Energy Administration Maryland Energy Administration (MEA) for an initial credit certificate Maryland Energy Administration (MEA) for initial credit certificate Maryland Film Office Maryland Form 502CR Tax Credits for Individuals Go to www Maryland Form 510 Schedule K 1 Maryland Form 510 Schedule K 1 Do not report the distributive Maryland Form 510 Schedule K 1 when completing Column 2 Maryland has more than 30 enterprise zones Counties and Maryland income tax up to $200 000 for costs for rental payments Maryland Mined Coal Tax Credit** O Maryland must exceed $500 000 The credit claimed cannot exceed Maryland research and development expenses paid during the Maryland research and development expenses paid during the tax Maryland State Department of Education Maryland State tax To the extent the credit is earned in any Maryland State tax To the extent the credit is earned in any year Maryland State tax To the extent the credit is earned in any year Maryland State tax To the extent the credit is earned in any year Maryland Wineries and Vineyards Tax Credit** T marylandtaxes com to download a copy of that form Mass Transit Administration Marketing Division maximum amount stated in the initial credit certificate If the may be carried forward for a specified number of successive tax may be carried forward to succeeding tax years until the earlier of may be claimed during the tax years when these credits may have may be eligible for tax credits based upon wages paid to qualifying may file the applicable Maryland income tax return completing the may not be claimed for this year meainfo@energy state md us meainfo@energy state md us Meets the definition of an individual with a disability as member of a qualified business entity) member should complete Part P of Form 500CR in its entirety to members only and should reflect a member s distributive or pro modification must be made for the tax year in which the research modification must be made in the amount of the credit claimed modification on the tax return modification Whenever a Long term Employment of Qualified Ex modification Whenever an Enterprise Zone Tax Credit is claimed modification Whenever this credit is claimed against the income more information below about recapture amounts more qualified positions within a 24 month period The $10 000 more than 1 year but not more than 2 years after the close of Most credits may not exceed the Maryland income tax liability but multiplied by $10 000 multiplied by the percentage reduction in the number of qualified Multiply line 1 by $1 000 and enter the result on line 2 Part D I Multiply line 1 by $3 and enter the result on line 2 Part O and Multiply line 5 by $1 500 and enter the result on line 6 Part D II Multiply the tax amount entered on line 7a by the prorate factor Multiply this by $100 and enter the result on line 2 municipalities are responsible for certifying a business as eligible must be completed through line 23 Part W for the PTE to pass on must be included with the return Must be required to file an income tax return in any must be spent on eligible project costs At least 25 newly hired must complete the Form 500CR section of their electronically must limit the amounts claimed for the project credit and start up must meet to qualify contact: Must not have any securities publicly traded on any must state whether of not the qualified business entity had 25 Mutiply the amount of tax calculated on line 8a by the prorate N Clean Energy Incentive Tax Credit X name of the investor signature of the investor under penalties of new economically disadvantaged employee for a three year period new or expanding location for ordinary business functions and newly created as a result of the establishment or expansion of newly created qualified filled position located in a Revitalization No credit may be earned for any fiscal year beginning on or No credit may be earned for any tax year beginning on or No credit may be earned for any tax year beginning on or No credit may be earned for any tax year beginning on or No credits may be earned for any tax year beginning on or No credits may be earned for any tax year beginning on or nonrefundable portion of this credit is claimed not claim a credit for an employee who was hired to replace a laid not located in a focus area A credit is allowed for each new not located in a focus area not provided in Part A I The credit is Note: A copy of the certification by DBED must be included Note: A copy of the certification by the Maryland Energy Note: A copy of the certification by the State Department of Note: A copy of the certification(s) by Maryland Energy Note: A copy of the DHMH certification must be included with your Note: A copy of the final credit certification from the Department Note: A copy of the required approval from the DHCD must be Note: For tax years beginning after December 31 2010 a qualified Note: If the number of employees entered on line 4a is fewer Note: If you are claiming a credit for more than one investment Note: If you are filing Form 510 you will not report the total Note: Part P I has two columns Column 1 is used by all qualified Note: PTE members will enter the distributive or pro rata share Note: Some state agencies will only provide certification to the Note: The member must inlcude a copy of the PTE s final credit number number by 005 Enter the result on line 2 Part N number by 0085 Enter the result on line 1 Part N number of employees entered on line 4a is fewer than 25 a credit number of qualified employees in their second year of employment number of these qualified employees in their respective second O Maryland Mined Coal Tax Credit X of $600 in child care and transportation expenses per each first of a qualified business entity); or of a qualified employee or for transportation expenses that are of affidavit must include the Taxpayer Identification Number and of any jurisdiction for the purpose of conducting business for profit of Assessments and Taxation of Business and Economic Development must be included of employment in the First Year box Also enter the number of filled qualified positions or 5% of the wages paid for these of five years after the credit was earned whichever comes first of five years after the credit was earned whichever comes first of five years whichever comes first of less than 24 months the tax credit will be recaptured The tax of new wineries or vineyards or the capital improvements made Of Qualified Business Entities That Are Pass Through Entities of qualified positions during the year in which the credit was of recapture is entered onto line 5 Part L of research and development credits for all businesses may not of tax available for application of the tax credit of the approved investment on line 1 of the business to or from home and the workplace The portion of of the following percentages: of the full amount of excess eligible project costs is used or until the of the full amount of the excess eligible startup costs or until the of the other entities with names FEINs type of credit and the of the project credit and the nonrefundable start up credit that of the total eligible project and start up costs as stated on their of these qualified employees in their respective second and third of wages paid to each first year qualified employee of years for which each credit may be carried forward of your Maryland State tax liability on the project taxable income off employee or to replace an employee on strike or for which off for more than one year; Office of Finance Programs Tax Incentives Office of Finance Programs Tax Incentives Office of Finance Programs Tax Incentives Group Office of Finance Programs Tax Incentives Group on behalf of qualified employees on last year s return This amount comes from line 7 Part X from On line 1 enter the amount from Line 1 Section II of Maryland On line 1 enter the One Maryland Economic Development Tax On line 1 Part A I enter the number of economically disadvantaged On line 1 Part C I enter the number of qualified employees in On line 1 Part G enter the number of qualified ex felons who On line 1 Part I enter 5% of the long term care insurance On line 1 Part M enter the amount of qualified commuter benefits On line 1 Part N enter in the box provided the number of kilowatt On line 10 Part A III enter the credit equal to the wages paid On line 10 Part D enter the lesser of line 9 or $1 000 000 On line 11 Part A III enter the credit equal to the wages paid On line 12 Part A III enter the sum of lines 9 through 11 On line 13 Part A IV enter the number of first year qualified On line 14 enter the sum of the amount of the project credits On line 14 Part A IV enter the amount of wages for these On line 15 subtract line 14 from line 10 and enter the result If On line 18 enter the sum of the amount of the start up credits On line 19 subtract line 18 from line 12 and enter the result If On line 2 enter the Biotechnology Investment Incentive Tax Credit On line 2 enter the refundable business income tax credits from On line 2 enter your share of the Maryland taxable income from the On line 2 Part A I enter the credit equal to the wages paid to each On line 2 Part C I enter the credit equal to 30% of the first $6 000 On line 2 Part G enter 20% of the first $6 000 of wages for each On line 2 Part I enter the number of employees within Maryland On line 2 Part J I the business will enter the amount of certified On line 2 Part K I the business will enter the amount of the On line 2 Part L enter 50% of the approved investment On line 2 Part M enter 50% of the amount entered on line 1 On line 2 Part N enter in the box provided the number of kilowatt On line 20 enter the lesser of line 13 or line 19 The start up credit On line 21 subtract line 17 from line 6 and enter the result If the On line 22 enter the lesser of line 20 or line 21 on line 23 Part P III If the result is 0 or less enter 0 On line 24 re enter the amount of the tax on non project income On line 26 calculate the credit against non project income by On line 26 enter the amount of recaptured tax credits (See On line 28 Part P III re enter the amount of Maryland income tax On line 28 Part W enter the State tax from your return On line 29 enter the lesser of line 27 or 28 On line 3 enter the Clean Energy Incentive Tax Credit from line On line 3 enter the lesser of line 2 or $250 000 On line 3 Part A I enter the credit equal to the wages paid to each On line 3 Part C I enter the credit equal to 20% of the first On line 3 Part I enter the lesser of line 1 or line 2 On line 3 Part M enter the number of employees for which On line 31 Part P III re enter the amount of Maryland income tax On line 4 enter the Health Enterprise Zone Hiring Tax Credit from On line 4 Part A I enter the credit equal to the wages paid to each On line 4 Part C I enter the sum of lines 2 and 3 On line 4 Part D I enter the lesser of line 2 or line 3 On line 4 Part I enter the lesser of line 3 or $5 000 On line 4 Part L enter the lesser of line 2 or line 3 On line 4 Part M calculate the number of months covered by the On line 4 Part N enter one fifth of the amount stated on the initial on line 4b to arrive at line 8b on line 4d and enter the result on line 7b On line 5 enter the Film Production Activity Tax Credit from line On line 5 Part A I enter the sum of lines 2 through 4 On line 5 Part C II enter the number of qualified employees in On line 5 Part K II the business will enter the amount of the On line 5 Part L enter any applicable recapture amount See On line 5 Part M enter the lesser of line 2 or line 4 This is the On line 6 enter the Small Business Research and Development Tax On line 6 Part A II enter the number of first year qualified On line 6 Part C II enter the credit equal to a combined total On line 6 Part L subtract line 5 from line 4 If the amount is less On line 7 enter the total of all of the business income tax credits On line 7 Part A II enter the amount of wages for these employees On line 7 Part C II enter the credit equal to a combined total of On line 8 Part A III enter the number of economically On line 8 Part C II enter the sum of lines 6 and 7 On line 8 Part D II enter the lesser of line 6 or line 7 On line 9 Part A III enter the credit equal to the wages paid to On line 9 Part C enter the sum of lines 4 and 8 on lines 4a through 4d of its Form 500CR to its members using on Maryland Form 510 Schedule K 1 to all PTE members on page 1 of Form 500CR to indicate that credits are from a on project taxable income (the amount computed on line 2 Section on the member s tax return for the same year as the PTE s fiscal on the Sustainable Communities Tax Credit it must complete One Maryland Economic Development Tax Credit One Maryland Economic Development Tax Credit** P only one summary section combine the total on line 2 Part Y To only Sections A and C of Part P I only the gross income deductions expenses gains and or $5 000 000 The total eligible project costs must be at least or $500 000 The total amount of eligible start up costs cannot or an electricity supplier (as defined under 1 101 of the Public or business in Maryland and provide commuter benefits for their or expand a business facility in a distressed Maryland county To or it expires five years after the credit was earned whichever or member or beneficiary with a statement showing their share of or other disposition of the ownership interest the portion of the or pro rata share of each tax credit to its members or pro rata shares of the credit amount subject to the $250 000 or PTEs should complete Part Z organization approved by the Department of Housing and organizations that are qualified business entities against their Other Information If a FEIN is to be used and has not been other taxpayers complete Part B Oyster Recycling Tax Credit** Q P ART I EM P LOY ER P ROV I DED LON G T ERM C ARE P for each project P II) claimed for this tax year from the remaining available project P III If the result is 0 or less enter 0 This is the tentative refund P One Maryland Economic Development Tax Credit X package The employer may claim a credit of 5% of the premiums paid during the tax year or $100 for each Maryland employee paid for these positions for the credit year paid on behalf of employees paid or incurred an individual or corporation may apply to the parent of a corporation which in turn passes the information PART A ENTERPRISE ZONE TAX CREDIT Part A I Credit for economically disadvantaged employees Part A II Credit for other qualified employees not located in Part A III Credit for economically disadvantaged Part A IV Credit for other qualified employees located in Part A Summary PART B HEALTH ENTERPRISE ZONE HIRING TAX tax return when claiming this tax credit Part C I Credit for employees with a disability hired A Part C II Credit for Child Care and Transportation PART C MARYLAND DISABILITY EMPLOYMENT TAX CREDIT Part C Summary Part Credit Part D Part D I Credit for employees of a qualified business A Part D I reflects the calculation of the credit for employees of Part D II Credit for employees working in a Facility Part D II reflects the calculation of the credit for employees of a PART D JOB CREATION TAX CREDIT Part D Summary PART E COMMUNITY INVESTMENT TAX CREDIT PART F BUSINESSES THAT CREATE NEW JOBS TAX PART G LONG TERM EMPLOYMENT OF QUALIFIED EX PART H WORK BASED LEARNING PROGRAM CREDIT Part J I Credits for Sensitive Compartmented Information Part J II The First Year Leasing Costs Tax Credit for PART J M ARY LAN D EM P LOY ER SEC URIT Y Part K I Research and Development Tax Credits for Part K II Research and Development Tax Credits PART K RESEARCH AND DEVELOPMENT TAX CREDITS PART L BIOTECHNOLOGY INVESTMENT INCENTIVE TAX PART M COMMUTER TAX CREDIT PART N CLEAN ENERGY INCENTIVE TAX CREDIT PART O MARYLAND MINED COAL TAX CREDIT PART P I CALCULATION OF TAXABLE INCOME Part P II also is used to calculate a certain nonrefundable portion PART P II CREDITS AGAINST TAX LIABILITY AND TAX ON Part P II is used to calculate the credits that can be claimed for PART P III REFUNDABLE ONE MARYLAND ECONOMIC PART P IV SUMMARY PART P ONE MARYLAND ECONOMIC DEVELOPMENT TAX PART Q OYSTER SHELL RECYCLING TAX CREDIT PART R BIO HEATING OIL TAX CREDIT PART S CELLULOSIC ETHANOL TECHNOLOGY RESEARCH PART T MARYLAND WINERIES AND VINEYARDS PART U FILM PRODUCTION ACTIVITY TAX CREDIT PART V ELECTRIC VEHICLE RECHARGING EQUIPMENT TAX PART W BUSINESS TAX CREDIT SUMMARY Part W of Form 500CR PART X EXCESS CREDIT CARRYOVER CALCULATION Part Y is used to report the refundable portion of business income Part Y line 7 If this number is less than 0 enter as a negative PART Y REFUNDABLE BUSINESS INCOME TAX CREDITS PART Z CORPORATION AND PASS THROUGH Part Z is used by corporations and PTEs to summarize the refundable particular tax year exceed the State tax developed for that year Parts W X or Y In addition PTE members that are corporations Pass through entities (PTEs) filing Maryland Form 510 with eligible Pass through entities (PTEs) If the business is a PTE an Pass through entities If the credit is earned by an investor pediatric services or geriatric services; perform security based contracting work perjury (or its authorized representative) and date plan) and must make an investment of at least $25 000 in portion of business income tax credits positions positions falls below 25 but does not fall below 10 and (2) the positions for at least five years positions for at least five years If the answer is No AND the positions or establish or expand business facilities in the state positive number practicable use an alternate method approved by the practitioner is located in a HEZ Practitioner may be eligible for tax credits based on wages paid preceding instructions for the respective parts premiums paid as part of an employee benefit package primarily using qualified energy resources derived from: Primary care including obstetrics gynecological services prior year Processing application requests for federal security clearance; produced at a Maryland facility using qualified energy resources products at a vineyard or in a winery A list of a number of expenses program or for a parking Cash Out program for their employees project ( project taxable income ) of the qualified business entity project costs and eligible start up costs must follow the additional Project costs Eligible project costs are the costs and expenses that project costs that are available to be claimed by the qualified project is placed in service A carryover credit may be claimed for property intended for use primarily as single or multi family proprietorship) that is duly organized and existing under the laws PTE and enter the PTE s FEIN Include the Maryland Form 510 PTE member Any credit from a PTE filing a fiscal year return is PTE members must read the Special Instructions II For Members PTE members of qualified business entities must multiply the PTEs must provide the following information on Form 500CR if they PTEs stop here PTEs do not complete the remainder of Part P purchased for space or water heating The credit may not exceed purchased in the current year Purpose Maryland Form 500CR is used to claim the following Q Oyster Shell Recycling Tax Credit X QMBC ceases operating as an active business with its headquarters Qualified business entities are those certified as such by the qualified business entity had maintained at least 25 qualified qualified business entity has maintained at least 25 qualified qualified business entity s Maryland State tax liability If a project qualified business working in a facility located in a Revitalization qualified capital expenses made in connection with the establishment qualified electric vehicle recharging equipment placed in service qualified employees must be employed for at least one year qualified employees not located in a focus area in their first year Qualified expenses include: qualified film production entity shall apply with DBED for an initial qualified investment qualified positions during the credit year or 2 5% of the wages qualified positions falls more than 5% below the average number qualified positions if the business facility established or expanded qualified positions in Maryland may be eligible for tax credits qualified positions on line 1 qualified positions on line 5 Qualified Small Business qualifies as an approved provider contact the Department of qualify a company can be any entity of any form (except a sole qualify for the credit for project costs a minimum of $500 000 Qualifying child care expenses are those expenses incurred by Qualifying employees are those employees who: Qualifying employees with a disability are those who are certified R Bio Heating Oil Tax Credit X raquel samson@maryland gov or rata share of the reported items except lines 4a through 4d (see Read the Special Instructions I For Qualified Entities That Recapture Provision If at any time during the three tax Recapture Provision If at any time during the three tax years Recapture Provision If the qualified position is filled for a period recaptured The income tax credit to be recaptured is reported on receiving a distributive or pro rata share of credits the required record of credits for which you qualify credits that have been taken refundable business income tax credit If you are filing Maryland refundable portions refunds (these are the amounts claimed as refunds for the start up Regulation (DLLR) may be eligible for tax credits for wages paid related expenses and costs were incurred By December 15th of Release 34 Reminder: One Maryland Economic Development Tax Credit reported on line 2 Section B Corporations multiply this income by representations made in connection with application for the Required certification must be included Required Statement and Recapture of Credit The statement required to be withheld from the qualified employees This is the requirements for such employees requires additional entries on Maryland Form 510 Schedule K 1 rescission and revocation procedures Research and Development Tax Credits** K RESERVED FOR FUTURE USE H residential property are not eligible for the enterprise zone tax result is 0 or less enter 0 result is determined by subtracting line 2 from line 1 If less than return electronically to claim the business income credits before completing the Maryland Form 510 Schedule K 1 for your return may need to be filed A copy of the certification from DBED return No carryover of excess credits exists for this tax credit S Cellulosic Ethanol Technology Research & Development same credit cannot be applied against more than one type of tax by the same taxpayer satisfy the thresholds to qualify for the credit the credit must be Schedule K 1 from the PTEs showing your share of the credit second year and $1 000 in the third year If the employee replaced second year employee up to a maximum of $2 000 per employee second year of employment Section 51(d)(4) of the Internal Revenue Code A business may Section A Project Costs Section A Project Costs Tax Credit Section A This section is used to separate the qualified business Section B Start up Costs Section B Start up Costs Tax Credit Section B This section is used to calculate the qualified business Section C section of the electronic PTE income tax return Form 510 secured enter APPLIED FOR followed by the date of application Security Clearance Administrative expenses not to exceed service service or initially began co firing during the period of 1/1/2006 service or the business locates to a qualified distressed county the Services (DORS) in the Maryland State Department of Education share of this information on the K 1 shells recycled during the tax year The credit may not exceed should be carried over to the appropriate fields in the Summary should reflect the PTE member s share of items as reported on the shows the business is located in a Maryland enterprise Small Businesses** J II SPECIAL INSTRUCTIONS I FOR QUALIFIED BUSINESS SPECIAL INSTRUCTIONS II FOR MEMBERS OF QUALIFIED Special Note for PTE Members: If you are a PTE member Specific Instructions Specific Instructions Specific Instructions Specific Requirements Specific Requirements Specific Requirements Spent at least one half of their working hours in the Start up costs Eligible start up costs to furnish and equip a State Department of Assessments and Taxation State income tax Contributions must be made to a nonprofit Subtract line 17 and line 22 from line 6 and enter the result on line Subtract line 17 Part P II from line 15 Part P II and enter result Subtract line 22 from line 20 and enter the result on line 30 Part Subtract line 26 from line 25 and enter the result on line 27 sum of line 4 and line 8 and entering the result on line 9 Part D Sustainable Communities Tax Credit from Form 502S Z T Maryland Wineries and Vineyards Tax Credit X taking the tax calculated on line 7a prorating it further on line 7b Tawes State Office Building tax an addition modification must be made in the amount of the tax credit tax credit for which they have been certified on line 2 Part F Tax Credit has expired and the line is reserved for a future Tax Credit is a small business the credit is calculated in basically Tax Credit Part tax credit that is allowed against the State tax on non project Tax Credit X Tax Credit** S tax credits: Tax exempt organizations Organizations that are tax tax for costs related to the construction or renovation of SCIF tax for the tax year tax on their individual returns if they have no other reasonable tax withheld during this tax year from the wages of qualified tax year after the tax year in which the qualified R&D expenses tax year for the beginning of the fiscal year the credit is still tax year for which a credit is claimed; tax year up to a base amount The Growth Credit is 10% of the tax years except an economically disadvantaged employee hired taxable income ) from the Maryland taxable income not associated taxable income during the refundable tax years of the One Maryland taxable net income from the PTE on line 1 taxable net income from your return on line 1 Taxation(SDAT) taxcredits@dat state md us taxincentives@choosemaryland org taxincentives@choosemaryland org taxincentives@choosemaryland org taxincentives@choosemaryland org taxpayer may claim by December 15th of the same year Taxpayers will enter their respective current year credits in lines 1 tentative tax credit term care insurance to their employees as part of their benefits than $5 000 000 than 10 do not continue You are not eligible to claim the tax than 10 years from the date the company first received a than you have listed on your return for yourself or for the than zero enter a negative amount that employee that is a PTE the members of the PTE may claim the distributive that may be considered is available on the Department of Business That office will provide information relating to certification that year DBED will certify the approved amount for which the that you had previously entered on line 8b Part P I The amount calculated on line 19 is the excess amount available the amount of Maryland income tax withheld during this tax year The amount of the approved credit is entered onto line 1 Part S The amount of the credit from line 2 Part G also is an addition The amount of the credit is 50% of the investment in the qualified The amount of this credit is limited to the Maryland State tax on The amount of this credit must be certified by the State Department The amount on line 15 is the amount of remaining excess eligible the amount stated in the final certificate The amount to be recaptured is the amount originally claimed The applicable recapture amount is calculated by multiplying the The business facility must be certified as having created at least The business may apply for tax credit in an amount equal to The business must file an electronic amended tax return with the The business must pay a portion of the cost of travel between the the business simultaneously received federal or state employment the business simultaneously receives federal or state employment The business will enter the DBED certified amount of construction The business will enter the DBED certified Basic Credit (3%) on the cost an employer pays to provide a Guaranteed Ride Home the Credit against tax on income from the project the credit allowed By December 15 of the same calendar year The credit claimed each year can not exceed one fifth of the The credit for each disabled employee hired is equal to 30% of The credit for each qualified employee hired is equal to 20% of The credit is 0 85 cents for each kilowatt hour of electricity the credit is equal to the lesser of 50% of the costs or $200 000 The credit is limited to the amount of Maryland State tax on the The credit is the lesser of $1 000 multiplied by the number of filled The credit is the lesser of 50% of the cost of providing commuter the credit will be allowed each year The amount allowed for any The credits are limited to the following amounts of wages paid the credits to which they relate are refundable credits and The employer cannot claim the credit until employment has The employer is not entitled to claim the credit until employment the excess may not be refunded the expenses were incurred Therefore an electronic amended the federal minimum wage then the refundable years will begin the first $6 000 of qualified first year wages and 20% of the first the first $6 000 of qualified wages during the qualified employee s the first year $3 000 in the second year and $1 500 in the third The following credits have expired but are eligible for the following carryover periods to the extent that the credit exceeds the tax the Form 502S section and enter the amount on line 1 of Part Z the full amount of the excess is used or the expiration of the 15th The individual or corporation must include a copy of the DBED the instructions below for Part P I Section A) PTEs complete The investor may claim the tax credit for the amount provided the investor sells transfers or disposes of the ownership interest The investor: the Maryland Form 510 Schedule K 1 issued to members The nonrefundable tax years consist of the initial tax year and any the portion of the year the employee worked unless the the project credit and the start up credit during nonrefundable tax The PTE member (the member of the qualified business entity) The PTE member computes the tax on the member s share of the PTE s fiscal year The PTE member should claim the credit the PTE s Maryland taxable income (line 1) using the highest rate The QMBC must: the qualified film production entity for that tax year the qualified The refundable portion is calculated by subtracting the amount The refundable portion is limited to the amount of Maryland income The refundable portion of the project credit for the tax year is The refundable portion of the startup credit is calculated after the the result is 0 or less enter 0 the return and is not carried forward to another tax year the same as would have been allowed for the replaced employee the same manner but Part K II is used The start up credit that may be claimed in Part P II is limited to the the start up tax credit against State income tax until the earlier the State income tax for film production activities in the state the State income tax on the project taxable income until the earlier The statement of affidavit must stipulate that if within 2 years the tax credit is claimed; or the tax liabilities computed on line 7a and 8a when a qualified the tax on your Maryland tax return Enter this amount on line 6 the tax year for which the tax credit is claimed The amount the tax year in which the business failed to satisfy the applicable The tentative refund is the amount if any by which any unused The tentative refund is the amount of the remaining excess startup The total credit will be taken over a two year period One half of The total ESCC tax credit approved by DBED may not exceed the wages of qualified employees under 10 908 of the Tax General The Work Based Learning Program Credit expired December 31 their first year of employment in the First Year box Enter the their Maryland tax returns Enter this amount on line 7a their withholding taxes These qualified organizations no then a refund for the excess amount may be claimed The credit then figure net income attributable to the entire facility by There are two credits The Basic Credit is 3% of the qualified Therefore a PTE must complete Sections A and C of Part P I The these amounts are included on line 7f of Form 500 line 5 of Form these business tax credits to its members The PTE must provide These credits are based on percentages of the property tax these qualified employees; they have been eligible for the credit; third year employee up to a maximum of $1 000 per employee this amount by entering the lesser of line 30 or line 31 this amount by subtracting line 26 from line 28 (if less than 0 This amount is also entered on line 5 Part Y This amount is the remaining excess eligible project costs for the This amount should also be entered on line 1 Part Y This amount should also be entered on line 16 Part W Add lines 36 this credit This credit expired as of December 31 2011 The first This credit had a five year carryover provision You may carryover This credit is allowed if a Maryland facility is originally placed in This credit is claimed on line 1 Part Q and also is entered on line This credit is claimed on line 1 Part T and also is entered on line This credit is not refundable and is applied only against the This credit is not refundable and is applied only against the This credit is not refundable and is applied only against the This credit is not refundable and is applied only against the This credit may also be claimed by tax exempt nonprofit This part is used to summarize all available nonrefundable tax This section also reflects the application of the prorate factor to This section is used to calculate the portion of the nonrefundable those expenses for moving costs separation costs and any other thresholds through 12/31/2015 and produces electricity during the tax year through 22 of Part W with the following exceptions: time the position was filled time you file your electronic income tax return title to which ownership shall vest in the qualified investor The to a QMBC in exchange for stock a partnership or membership to and for child care expenses and transportation expenses paid to be claimed by the qualified business entity as a start up credit To be eligible for the credit the HEZ practitioner may create one or to be permitted to claim the credit See Form 510 instructions To calculate the project taxable income proceed as follows: To claim the approved credit an individual or corporation must To claim the credit an individual or corporation must submit To claim the credit an individual or corporation shall apply to the To claim the credit an individual or corporation shall apply with the To claim the credit before beginning a film production activity a To claim the ESCC tax credit a business must submit an application to claim the One Maryland Economic Development Tax Credit The to DBED by September 15th following the tax year in which the to each second year employee up to a maximum of $3 000 per to each third year employee up to a maximum of $1 500 per to existing wineries or vineyards in Maryland to obtaining or maintaining employment or to transitioning to provide the required notice to DBED of having made the to qualified employees To qualify businesses must be located in Maryland and create new to replace a previously qualified economically disadvantaged to see the list of Maryland Enterprise Zones by Region to the facility and overhead expenses apportioned to the to the One Maryland Credit to the public service company franchise tax The credit is $3 for to the same economically disadvantaged employee: $4 500 in to travel to and from work total amount of the credit claimed (or in the case of a sale transfer Total the amount from line 6 from each separate Part L Using training benefits Training employees in the State to administer the clearance Transportation expenses are those expenses incurred by a Travel must be on a qualified mass transit vehicle or system or U Film Production Activity Tax Credit X under a program approved by Maryland Department of Labor unrelated business taxable income Until up to a maximum of $1 000 per employee using separate accounting reflecting only the gross income Utilities Article) for the purchase of Maryland mined coal An Utilities labor costs service costs repair costs maintenance costs V Electric Vehicle Recharging Equipment Tax Credit X verifies the amount of oyster shells recycled during the year water heating This credit is claimed on line 1 Part R and also is Were employed at least 35 hours per week by the business Were hired by the business after the later of the date on were paid or incurred Whenever a credit is claimed against the income tax an addition Whenever this credit is claimed against the income tax an addition whether or not the PTE is a qualified business entity which would which pays at least 150% of the federal minimum wage is located which the business entity located in the enterprise zone which the enterprise zone was designated or the date on which the qualified R&D expenses were paid or incurred whichever comes first who is licensed or certified under the Maryland Health Occupations will be claimed on Part Y with the project (the non project taxable income ) Project taxable WITHHOLDING QUALIFIED EMPLOYEES AND TAX LIABILITY Withholding Reconciliation Return) See Administrative Work Based Learning Tax Credit X worker or interpreter who: workplace www commuterchoicemaryland com www dors state md us year and it exceeds the State income tax the individual or year boxes year credit is no longer allowed to be claimed on this form year end Even though the K 1 listing the credit may reflect the year following the end of the tax year in which the expenses were year for which the Maryland qualified research and development year If the employee replaced a previously qualified economically year in which the expenses were incurred DBED will review the year in which the investor makes the investment in the QMBC year period beginning with the year the employee was qualified year qualified employee with a disability year that exceed the base amount year the employee was qualified years years years years years years years after the year the credit was earned the business fails to years and any refundable tax year amounts years for the One Maryland Economic Development Tax Credit years or until fully applied It is your responsibility to maintain a years with DBED approval; You must obtain an initial credit certificate from Maryland Energy you provide the PTE s Federal Employer Identification Number you will use 0) and enter that result or line 27 whichever is less zone administrator for more information Department of Business